The financial and health impacts of forced fracking and compulsory unitization on landowners and surrounding Ohioans.
Background: Compulsory unitization is a process used when voluntary consent for oil and gas drilling is NOT obtained from all landowners. In Ohio, this affects approximately 40% of wells drilled. The process allows the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management (ODNR) to combine mineral rights from individual land tracts to form a drilling unit for efficient resource development.
Case Study: Jill Antares Hunkler purchased land in Belmont County, Ohio, in 2007, aiming for a traditional, natural lifestyle. ABC reported by 2017, her property was surrounded by 78 oil and gas fracking wells. Her land, located at the headwaters of the Captina Creek Watershed, sits atop the Utica and Marcellus Shales, known for their significant oil and natural gas reserves. As of April 2024, the Marcellus Shale held about 120 million barrels of oil, and the Utica Shale contained 2.3 million barrels. Hunkler learned about the state’s unitization laws, which limited her control over her property.
Another Perspective: In the same ABC report, another landowner Randi Pokladnik, a retired research chemist, described the impact of fracking on her property: “It sounds like a jet engine in the middle of the night, and you can smell the emissions. There’s a constant barrage of sand trucks and fracking trucks carrying brine.”
Unitization: Ohio Revised Code 1509.28 details the unitization process, which consolidates mineral rights from individual land tracts to create a drilling unit for efficient resource development. This process begins when owners of 65% of the land over an oil and/or gas pool apply to the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management (ODNR). The ODNR oversees the permitting, drilling, operation, and plugging of oil and gas wells in Ohio. The unitization process allows the Division to manage the pool as a drilling unit, even if some landowners do not have a lease in place.
Applicants must demonstrate that the proposed unit will significantly enhance oil and gas recovery and that the value of this increased recovery will exceed the additional costs. Upon submission of a unitization application, the ODNR schedules a hearing to determine approval. If approved, the order will specify the terms and conditions for the unit’s operation.
Negotiating a Lease for Fracking in Ohio
- Economic Benefits: Proponents argue that fracking brings jobs and passive income opportunities to Ohio, a state historically reliant on coal and steel manufacturing. Ohio ranks sixth in natural gas production, significantly contributing to the state’s economic progress.
- Compensation for Landowners: Ohio law requires “just and reasonable” compensation for leasing sites. In 2024, local drillers reported paying an average of $500 per acre, with lease bonus payments in southeast Ohio ranging from $3,000 to $6,000 per acre. However, landowners are often exploited due to a lack of market knowledge.
- Royalties: Property owners receive royalties on the gas produced, typically starting at 12.5%.
- Regulatory Stance: The Ohio Department of Natural Resources follows and administers the law but does not regulate landmen. Numerous landowners have been forced to participate in fracking against their will.
- Industry Response: The Ohio Oil & Gas Association claims that the industry’s safety standards are rigorous, with only a few major incidents reported since 2018.
- Environmental and Health Concerns: Fracking, or hydraulic fracturing, can potentially impact drinking water resources and has raised concerns about environmental and human health due to wastewater and greenhouse gas emissions. Despite safety measures, incidents like gas leaks and oil spills have occurred. Here’s a breakdown of some of the potential health ramifications:
Air Pollution
- Respiratory Issues: Breathing in particles of sand used in the fracking process can cause lung diseases and early death in the elderly who live downwind of a fracking operation.
Cancer Risks
- Carcinogenic Chemicals: Some of the chemicals used in fracking have been linked to cancer, including certain types of leukemia.
- Skin Disorders: Exposure to fracking chemicals can cause skin disorders and other dermatological issues.
Endocrine Disruption
- Hormonal Imbalances: Fracking has been linked to disruptions in the endocrine system, which can affect hormone levels and lead to various health problems2. Reproductive Health
- Pregnancy Complications: Studies have shown that fracking can lead to preterm births and high-risk pregnancies.
Water Contamination
- Drinking Water: Chemicals used in fracking can potentially contaminate underground drinking water sources if they travel through cracks in the rock or if there are spills from trucks or tanks.
- Health Risks: Contaminated water can lead to serious health issues, including childhood leukemia, birth defects, cardiac problem and extensive headaches.
- Pregnancy Complications: Studies have shown that fracking can lead to preterm births and high-risk pregnancies.
- Skin Disorders: Exposure to fracking chemicals can cause skin disorders and other dermatological issues.
Worker Safety
- Occupational Hazards: Workers involved in fracking are atrisk of exposure to high levels of toxic chemicals, which has led to fatalities in some cases.
The ongoing debate about fracking centers on its benefits and health risks. While fracking offers economic advantages like job creation and energy independence, numerous studies have identified significant health risks. Due to the complexity and potential severity of these risks, many researchers and public health experts believe that further studies are necessary to fully understand the long-term impacts of fracking on human health and the environment. This continued research is essential for developing regulations and practices that can mitigate these risks while maximizing the benefits.
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